Trump Jr. Clashes With Justin Wolfers Over Surging Treasury Yields: 'Our Children Will Never Recover' — El Erian And Other Experts Weigh In
The 10-year Treasury yield has reached its highest point since July, a development that has drawn attention from global markets.
What Happened: The 10-year Treasury yield closed at 4.24% on Wednesday, up from 4.204% on Tuesday and 4.074% at the end of the previous week, as reported by Benzinga. This is the highest settlement yield since Jul. 25, according to Market Data.
The yield has been consistently rising for over a month, with a particularly sharp increase on Monday, and has continued to climb incrementally since then.
On Wednesday, The S&P 500 experienced a slump of 1.24% from its opening value of 5,834.50 to its lowest point of 5,762.41. The index later recovered and closed at 5,797.42.
Economist Mohamed El-Erian pointed out the significant difference in the extent of the yield increase between the U.S. and other countries. He stated that the U.S. 10-year yield has risen by almost 50 basis points this month, while Germany’s has only increased by around 20 bps, widening the differential to 194 bps.
“While the October increase in US government bond yields have pulled yields up in other countries, the extent of the moves is quite different,” El-Erian wrote on X.
El-Erian also noted that this difference helps explain recent currency movements.
Richard Clarida, a former member of the Federal Reserve Board, commented on the trend ahead of the Federal Reserve’s November meeting in an interview with CNBC’s Closing Bell, emphasizing that the increase is primarily driven by solid growth indicators rather than inflation concerns.
He noted, “the economy is stronger than they probably thought it would be,” suggesting that expectations around future rate cuts may need adjustment as the neutral rate appears higher than previously anticipated.
In a heated exchange on social media, former President Donald Trump‘s son Donald Trump Jr. accused Democrats of trying to manipulate economic numbers by spending “half a trillion dollars two weeks before an election,” asserting that this financial maneuvering will leave future generations burdened by an insurmountable debt.
He claimed, “You can’t make this stuff up anymore. Our children will never be able to get out from under the debt created by these power-hungry imbeciles.” His remarks came in the wake of Treasury yields surging.
Responding to the post, economist Justin Wolfers emphasized that such fluctuations in Treasury debt are typical and should not be viewed as signs of wrongdoing. “To be clear: I don’t think there’s anything nefarious going on,” he stated, noting that “blips like this happen all the time,” particularly given the economic disruptions caused by the pandemic.
Wolfers highlighted that while rising yields can indicate changing economic conditions, they are influenced by a variety of factors and do not necessarily reflect manipulation or ill intent by policymakers.
Read Next: Why Nasdaq, S&P 500 Futures Are Trading Lower Wednesday
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NICHI announces Manitoba recipients of funding to advance critical Indigenous housing projects in urban, rural and northern areas and address urgent and unmet needs
WINNIPEG, TREATY 1 TERRITORY, MB, Oct. 23, 2024 /CNW/ – Today, National Indigenous Collaborative Housing Incorporated (NICHI) Chief Executive Officer John Gordon and Minister of Indigenous Services and Minister responsible for FedNor, Patty Hajdu, announced the recipients of NICHI’s expression of need process to address the critical need for safe and affordable urban, rural and northern Indigenous housing projects in Manitoba.
Today’s announcement includes nearly $21 million in funding for 7 projects in Manitoba led by:
- Manitoba Keewatinowi Okimakanak
- 2Spirit Manitoba
- Winnipeg Indigenous Friendship Centre
- Ndinawemaaganag Endawaad Inc.
- First Nation Healing Centre Inc.
- Flin Flon Aboriginal Friendship Centre
- Manitoba Inuit Association
Through the national process, $277.8 million out of a total funding amount of $281.5 million is being distributed to 75 projects across the country aimed at building more than 3800 units. This funding was provided to Indigenous Services Canada through Budget 2022 and was distributed by NICHI, applying its “For Indigenous, By Indigenous” approach. NICHI brings together Indigenous-led housing, homelessness, and housing-related service delivery organizations to provide lasting solutions that address diverse housing inadequacies, including homelessness for Indigenous Peoples living in urban, rural and northern areas.
Over 171,000 Indigenous Peoples in urban, rural and northern areas off reserve are in core housing need according to the 2021 Census. Indigenous Peoples continue to experience core housing needs at a significantly higher rate than non-Indigenous people – with the gap between them being exacerbated by the housing and homelessness crisis and by inadequacies in distinctions-based funding.
Through a For Indigenous, By Indigenous approach to Indigenous housing that recognizes Indigenous organizations are best placed to understand the needs of their communities, Indigenous Services Canada is striving to close this gap by 2030.
Access to safe and affordable housing is critical to improving health and social outcomes and to ensure a better future for Indigenous communities. This funding initiative is part of the Government of Canada’s commitment to address the social determinants of health and advance self-determination in alignment with the United Nations Declaration on the Rights of Indigenous Peoples Articles 21 and 23.
Quotes
“Indigenous housing providers deserve Indigenous advocacy at the national level. By securing this investment and developing a For Indigenous, By Indigenous funding process, NICHI is putting Indigenous people back in charge of housing policy for our people and communities. The overwhelming expression of need we received in our application process—totalling $2 billion across 447 applications—demonstrates that the work is far from over—but today, we’re excited to announce funding that will make a positive impact in the lives of Indigenous peoples in Manitoba.”
John Gordon
Chief Executive Officer, National Indigenous Collaborative Housing Incorporated
“In true partnership with Indigenous Peoples, we are getting more homes built, faster. Communities know best what they need, which is why these projects follow a By Indigenous, For Indigenous approach. We will always be there for communities as they take the lead to build homes; it’s a matter of fairness.”
The Honourable Patty Hajdu
Minister of Indigenous Services
“NICHI’s remarkable achievement in swiftly delivering $277.8 million underscores its unwavering commitment to advancing Indigenous housing nationwide. As a new organization, NICHI’s expedient action demonstrates unparalleled dedication and catalytic impact on transforming community housing landscapes. We commend NICHI for its pivotal role in driving forward this transformative initiative.”
Lisa Ker
Acting Executive Director for the Community Housing Transformation Centre
“With thousands of years of collective experience, urban, rural, and northern Indigenous housing providers have the capacity, know-how, and shovel-ready projects to address the challenge. NICHI has shown that it can deliver funding programs swiftly, fairly, and responsibly.”
Margaret Pfoh
President, Canadian Housing and Renewal Association
Quick facts
- On June 8, 2023, the Government of Canada announced that the National Indigenous Collaborative Housing Inc. (NICHI) would deliver $281.5 million in immediate funding over two years to address the urgent, unmet needs of Indigenous Peoples living in urban, rural and northern areas.
- NICHI held its expression of need process from late November 2023 to January 12, 2024, and funding was allocated to 75 non-profit, Indigenous-led housing organizations by an objective, unbiased Project Selection Advisory Council, which prioritized urgent and unmet housing needs in Indigenous communities across the country. Currently, $3.7 million of the total funding amount remains to be allocated.
- The National Indigenous Collaborative Housing Inc. (NICHI) is an Indigenous-led national housing organization working to ensure that all Indigenous people across Canada have access to supports and services that provide safe, affordable, secure and dignified housing.
- Support for projects will include funding for acquisitions of new properties and buildings, construction of new facilities, repairs and renovations, housing-related training, growing organizational capacity and administration costs.
Associated links
National Indigenous Collaborative Housing Incorporated (NICHI)
Housing for Indigenous Peoples
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IBM misses third-quarter revenue estimates as consulting drags; shares fall
-International Business Machines (IBM) missed analysts’ estimates for third-quarter revenue on Wednesday, hurt by weakness in its consulting segment as businesses cut back on discretionary expenses, coupled with declines in the infrastructure business.
IBM’s shares fell about 4% after rising more than 40% this year, as investors bet on the company’s potential to benefit from generative AI through its software and consulting services.
An uncertain macroeconomic backdrop has prompted businesses to prioritize expenses on long-term consulting projects centered around AI, impacting IBM’s sales from shorter-term deals.
“A pause in discretionary spending is impacting our consulting business,” CEO Arvind Krishna said during a post-earnings call.
Revenue grew about 1% to $14.97 billion, missing estimates of $15.07 billion, according to data compiled by LSEG. Revenue from consulting was relatively flat in the third quarter.
The company’s AI Book of Business — a combination of bookings and actual sales across various products — grew to $3 billion, up $1 billion from the second quarter.
“Many clients are looking at how to free up cost and productivity to go invest in GenAI,” Chief Financial Officer James Kavanaugh told Reuters.
The book was driven by consulting, constituted of one-fifth software and four-fifths consulting in the third quarter. However, this growth is not yet reflected in the overall consulting segment.
“Client budgets are not expanding and AI consulting, rather than being additive, is cannibalizing other engagements,” said Michael Ashley Schulman, chief investment officer at Running Point Capital.
Conversely, IBM’s software segment recorded its biggest jump in quarterly revenue in three years, as enterprises expand cloud infrastructure to accommodate genAI tech.
Software growth has helped drive profit of $2.30 per share for the third quarter, beating analysts’ average estimate of $2.23 per share, according to data compiled by LSEG.
The company’s infrastructure segment, which houses IBM’s mainframe, saw revenue decline 7% as the business is at the end of a three-year product cycle, when sales cyclically slump.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Alan Barona)
I'm Paying 1% on $2 Million: Is My Financial Advisor Charging Too Much?
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Paying a 1% annual fee to a financial advisor for managing a $2 million investment portfolio is pretty typical, but that doesn’t necessarily mean it’s the right amount for every investor. Even small-sounding financial advisor fees can seriously erode long-term returns when compounded over years or decades. A 1% annual fee on a $2 million portfolio earning 7% could cost you more than $375,000 over 10 years. You may be able to get better performance by choosing a less costly advisor or otherwise finding a lower fee rate. The key is to identify specific services you are receiving in exchange for those fees and carefully evaluate whether your portfolio’s performance and advisor relationship justify the costs from a mathematical and personal perspective.
Do you have questions about retirement planning, tax planning or investing? Speak with a financial advisor today.
According to a 2021 study by Advisory HQ, the average financial advisor fee is 1.02% for $1 million in assets under management (AUM) as an annual fee. Advisors and firms all have their own fee schedules, though, so these can vary. This type of fee usually covers investment management, portfolio monitoring and performance reporting services, hence why they’re usually based on asset tiers. For things like financial planning and other services, hourly and fixed fees are more common, though percentage-based fees can still apply.
Advisors with more years of experience, advanced expertise or special certifications like certified financial planner (CFP) can sometimes charge higher fees. The exact fee percentage can also typically differ depending on the overall account size and specific mix of services provided.
For example, an advisor may offer a tiered fee schedule where the percentage rate decreases as asset amounts rise. In other words, on the first $1 million in a portfolio, the annual fee may be 1.2%, while assets above $2 million are charged at a rate of just 0.8%. This structure allows firms to serve clients across the wealth spectrum, while still being incentivized to help those clients continue accumulating assets.
Some advisors also customize service offerings and related fees to match a client’s needs. An advisor may charge a lower percentage fee, but exclude financial planning and instead focus narrowly on investment management. Others may set up a comprehensive service bundle that includes financial planning, tax preparation, estate planning review, insurance analysis and other, more specialized offerings. In those cases, the fee paid may be higher but aims to encompass full-scope financial guidance rather than just investment portfolio oversight.
Tesla, Spirit Airlines, IBM, Boeing, And ARM Holdings: Why These 5 Stocks Are On Investors' Radars Today
U.S. markets closed lower on Wednesday, with the Dow Jones Industrial Average falling nearly 1% to 42,514.95 and the S&P 500 slipping by a similar margin to 5,797.42. The Nasdaq saw a sharper decline of 1.6%, ending at 18,276.65.
These are the top stocks that gained the attention of retail traders and investors throughout the day:
Tesla Inc. TSLA closed the day with a 1.98% decline at $213.65, after reaching an intraday high of $218.72 and a low of $212.11. The 52-week range for the stock is $271 to $138.8. The Elon Musk-led company reported third-quarter revenue of $25.18 billion, up 8% year-over-year, missing the Street consensus estimate.
Spirit Airlines, Inc. SAVE saw a significant surge of 45.97% to close at $3.08. The stock hit an intraday high of $3.2 and a low of $2.53, with a 52-week range of $17.49 to $1.4. The airline is once again exploring a merger deal with Frontier Group Holdings Inc. amid potential bankruptcy filing talks.
See Also: Jim Cramer Says This Energy Stock Is A Buy: ‘It Can Make Money Even At These Levels’
International Business Machines Corp IBM ended the day with a slight increase of 0.22% at $232.75. The stock’s intraday high was $233.34 and the low was $230.26. It has a 52-week range of $237.37 to $136.05. IBM reported third-quarter revenue of $14.968 billion, missing the consensus estimate.
Boeing Co BA closed down 1.76% at $157.06, after reaching an intraday high of $161.47 and a low of $153.53. The 52-week range for the stock is $267.54 to $146.02. Boeing reported a 1% year-over-year revenue decline in the third quarter of 2024.
Arm Holdings Plc ARM saw a decline of 6.67% to close at $142.41. The stock hit an intraday high of $148.44 and a low of $140.7, with a 52-week range of $188.75 to $47.14. The company has reportedly threatened Qualcomm Inc. with the cancellation of its chip design license.
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Prepare for the day’s trading with top premarket movers and news by Benzinga.
Read Next:
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Stora Enso Interim Report January-September 2024: Continued growth and earnings improvement
STORA ENSO OYJ INTERIM REPORT 24 October 2024 at 8:30 EEST
HELSINKI, Oct. 24, 2024 /PRNewswire/ —
Q3/2024 (year-on-year)
- Sales increased by 6% to EUR 2,261 (2,127) million.
- Adjusted EBIT increased to EUR 175 (21) million*.
- Adjusted EBIT margin increased to 7.8% (1.0%).
- Operating result (IFRS) was EUR 139 (-1) million*.
- Earnings per share (EPS) were EUR 0.11 (-0.04) and EPS excl. fair valuations (FV) was EUR 0.10 (-0.05).
- The value of the forest assets increased to EUR 8.8 (8.3) billion, equivalent to EUR 11.11 per share.
- Cash flow from operations amounted to EUR 271 (231) million. Cash flow after investing activities was EUR 4 (38) million.
- Net debt increased by EUR 409 million to EUR 3,528 (3,120) million, mainly due to the board investment at the Oulu site.
- The net debt to adjusted EBITDA (LTM) ratio was 3.1 (2.4). The target to keep the ratio below 2.0 remains.
Q1–Q3/2024 (year-on-year)
- Sales were EUR 6,727 (7,222) million.
- Adjusted EBIT was EUR 478 (292) million.
- Operating result (IFRS) was EUR 372 (4) million.
- Earnings per share (EPS) were EUR 0.26 (-0.09) and EPS excl. fair valuations (FV) was EUR 0.25 (-0.09).
- Cash flow from operations amounted to EUR 863 (631) million. Cash flow after investing activities was EUR -15 (-31) million.
- Adjusted ROCE excluding the Forest division (LTM1) decreased to 2.7% (4.7%), the target being above 13%.
* The classification of the Beihai site as assets held for sale has been ceased. The previously published adjusted EBIT and IFRS operating result for January–June 2024 decreased by EUR 15 million due to the inclusion of the previously suspended depreciation into the restated results.
Key highlights
- The value creation programmes, centred on sourcing, operational and commercial efficiencies, are making good progress across all divisions.
- The profit improvement programme, initiated in Q1/2024 with a target of EUR 120 million in fixed cost savings, has progressed well, full impact is expected from 2025.
- In October, Stora Enso announced that it is preparing to sell approximately 12% of its total forest assets of 1.4 million hectares in Sweden, valued at EUR 6.3 billion. A sale would reduce debt, confirming the financial value of the Company’s forest holdings.
- Stora Enso decided in October to discontinue the divestment process for its Beihai packaging board production site and forestry business. Stora Enso is of the view that the value in own use of the assets exceeds the achievable transaction value, and has therefore chosen to retain these operations within the Group. As a result of the reversal of classification as held for sale, Adjusted EBIT and IFRS operating result for Q1 to Q3/24 decreased by EUR 7.5 million per each quarter, EUR 30 million for the full year 2024, due to the inclusion of previously suspended depreciation into the restated results.
- The consumer board investment at the Oulu site in Finland is progressing on schedule. Production is expected to start in the second quarter of 2025, with full capacity estimated to be reached during 2027.
Guidance
Stora Enso’s full year 2024 adjusted EBIT is expected to be significantly higher than for the full year 2023, EUR 342 million.
Outlook
Market and business outlook
Stora Enso’s recent profitability improvement initiatives have positively impacted the earnings trend over the past four quarters and reduced the Group’s net debt to EBITDA ratio in the last two quarters. Stora Enso anticipates that the gradual market recovery will slow down for the rest of the year, which is expected to adversely impact its profits in the fourth quarter. This sequential slowdown is attributed to factors such as weak consumer board demand, corrugated board overcapacity, and an ongoing weak construction sector. Additionally, high wood costs are likely to continue compressing margins. Stora Enso anticipates persistent market volatility, including high inflation, potential labour strikes, and slow retail growth, along with other demand and price fluctuations through year-end.
Packaging Materials
The seasonally low fourth quarter is expected to encounter challenges, including decreased volumes due to weaker demand and annual maintenance shutdowns. The average price level across the division is expected to be lower in the fourth quarter, despite price increases in both consumer board and containerboard. This is due to product mix adjustments with a higher portion of lower-priced containerboard compared to higher-priced consumer board products. The planned annual shutdowns are at five of its production sites, of which four in consumer board including two major integrated sites, which will also elevate fixed costs. The persistent high cost of wood remains a primary concern. Weak order inflow during third quarter makes the fourth-quarter outlook uncertain. Demand for cartonboard, kraftliner, and testliner is expected to drop slightly, influenced by seasonal lows, while paper demand is forecasted to grow sequentially due to favourable seasonal effects.
Packaging Solutions
Market demand remains unpredictable and volatile, influenced by weekly fluctuations and pervasive overcapacity. Volumes in Western Europe are likely to decline sequentially due to seasonal effects, with any significant uplift from traditional peak periods like “Black week” and Christmas not anticipated. The Chinese market continues to struggle amid a weak economic environment. Despite no major anticipated cost increases in the fourth quarter, ongoing expenses related to increased containerboard prices and the ongoing ramp up of the corrugated packaging site in De Lier, NL, are expected to constrain margin growth.
Biomaterials
Demand will vary across segments, but the division’s average is expected to remain unchanged quarter-on-quarter. In China, fourth-quarter demand is poised to rise due to low inventories, favourable seasonal demand, and lower prices. Conversely, demand in Europe is expected to weaken slightly, primarily due to reduced demand for printing and writing paper products, and tissue, although demand for fluff is projected to remain stable. Wood prices in the Nordics are forecasted to be high, while chemical prices are likely to stabilise at third-quarter levels.
Wood Products
Demand for classic sawn products and pellets, particularly for heating, is expected to rise sequentially in the fourth quarter due to seasonal factors. Demand for building solutions, such as construction beams and cross-laminated timber, is anticipated to drive higher volumes. Raw material costs in the fourth quarter are expected to align with third-quarter levels on average, although fixed costs may increase with volume growth. Elevated wood costs are projected to continue, with a year-on-year increase.
Forest
Wood markets in the Baltic Rim are forecasted to remain constrained due to a shortage of wood, driven by heightened demand for industrial wood (pulpwood and sawlogs). A robust and sustainable financial performance is expected to continue from the first three quarters into the fourth quarter. General cost inflation, particularly affecting logistics and harvesting costs from the third quarter, is also expected to impact the fourth quarter.
Long-term growth opportunities
Stora Enso maintains leading market positions in sectors positioned for long-term growth, including high-end consumer packaging, wood construction, and innovative biomaterials. The Group is set to capitalise on sustainability trends and regulatory advancements which favour its product offerings, enhancing its market presence and driving continuous progress.
Key figures
|
EUR million |
Q3/24 |
Q3/23 |
Change % Q3/24–Q3/23 |
Q2/24 |
Change % Q3/24–Q2/24 |
Q1-Q3/24 |
Q1-Q3/23 |
Change % Q1-Q3/24–Q1-Q3/23 |
2023 |
|
Sales |
2,261 |
2,127 |
6.3 % |
2,301 |
-1.7 % |
6,727 |
7,222 |
-6.9 % |
9,396 |
|
Adjusted EBITDA |
328 |
180 |
82.3 % |
312 |
5.1 % |
938 |
777 |
20.7 % |
989 |
|
Adjusted EBIT3 |
175 |
21 |
n/m |
153 |
14.4 % |
478 |
292 |
63.8 % |
342 |
|
Adjusted EBIT margin3 |
7.8 % |
1.0 % |
6.7 % |
7.1 % |
4.0 % |
3.6 % |
|||
|
Operating result (IFRS)3 |
139 |
-1 |
n/m |
92 |
52.4 % |
372 |
4 |
n/m |
-322 |
|
Result before tax (IFRS)3 |
98 |
-41 |
n/m |
43 |
129.9 % |
235 |
-117 |
n/m |
-495 |
|
Net result for the period (IFRS)3 |
84 |
-34 |
n/m |
35 |
142.3 % |
195 |
-106 |
284.4 % |
-431 |
|
Forest assets1,3 |
8,758 |
8,256 |
6.1 % |
8,723 |
0.4 % |
8,758 |
8,256 |
6.1 % |
8,731 |
|
Adjusted return on capital employed (ROCE), LTM2,3 |
3.7 % |
4.5 % |
2.6 % |
3.7 % |
4.5 % |
2.4 % |
|||
|
Adjusted ROCE excl. Forest division, LTM2,3 |
2.7 % |
4.7 % |
1.1 % |
2.7 % |
4.7 % |
1.0 % |
|||
|
Earnings per share (EPS) excl. FV, EUR3 |
0.10 |
-0.05 |
n/m |
0.06 |
66.7 % |
0.25 |
-0.09 |
n/m |
-0.73 |
|
EPS (basic), EUR3 |
0.11 |
-0.04 |
n/m |
0.05 |
131.6 % |
0.26 |
-0.09 |
n/m |
-0.45 |
|
Net debt to LTM2 adjusted EBITDA ratio |
3.1 |
2.4 |
3.5 |
3.1 |
2.4 |
3.2 |
|||
|
Average number of employees (FTE) |
19,364 |
21,132 |
-8.4 % |
19,469 |
-0.5 % |
19,405 |
21,097 |
-8.0 % |
20,822 |
|
1 Total forest assets value, including leased land and Stora Enso’s share of Tornator. |
|||||||||
Stora Enso’s President and CEO Hans Sohlström comments on the third quarter 2024 results:
“I am pleased to report that our value creation and profit improvement programmes are progressing well across all divisions. These initiatives, designed to optimise our processes and enhance our competitive edge, remain on track. Improvements in profitability, along with more favourable market conditions in some segments during the third quarter, continued to support a positive earnings trend. Our team is diligently managing operations, sales, sourcing, working capital, and refining processes to ensure operational efficiency, cost competitiveness and financial strength. And our profit improvement programme, initiated earlier this year with a goal of 120 million euro in fixed cost savings, is set to deliver its full impact from 2025.
We have seen a strong increase in our Group financial performance this quarter compared to last year, driven by higher prices and volumes, particularly in Packaging Materials. The Biomaterials division demonstrated strong performance, though demand weakened during the quarter with rapidly decreasing pulp prices. Our Forest division delivered a record high third quarter result, driven by increased wood prices. This resulted in a Group sales increase to 2,261 million euro from 2,127 million euro. The adjusted EBIT rose for the fourth consecutive quarter, reaching 175 million euro, up from 21 million euro in 2023, due to price hikes and cost cuts. This improved our margin to 7.8% from 1%. Challenges persist in the Wood Products division due to a weak construction sector and our Packaging Solutions face price lags and market overcapacity. Despite these challenges, our cost-saving measures have effectively reduced both fixed and variable costs.
On 23 October, we announced that after a thorough review and negotiations, we decided to stop the divestment process and instead retain our Beihai packaging production site and forestry business, recognising that the value in own use of these assets exceeds achievable sale proceeds. This decision supports our strategic aim to strengthen our leadership in the fiber-based packaging market and by optimising the product mix, this site will continue to enhance our position as a leading global supplier, especially in the Asia Pacific region. We are committed to financial prudence, with no significant capital expenditure expected in the mid-term as we pursue these strategic enhancements.
In our continuous pursuit of financial stability, we are preparing for the sale of approximately 12% of our forest assets in Sweden, covering 1.4 million hectares valued at 6.3 billion euro. This divestment aims to strengthen our balance sheet, underscoring the economic value and resilience of our forest holdings.
In our ongoing commitment to prioritise financial stability through strategic decisions such as the divestment of forest assets in Sweden, we remain equally dedicated to maintaining the highest environmental standards in all operational areas.
Looking ahead, we are intensifying our focus on capital allocation and asset strategy in growing market segments, laying the foundation for enhanced competitiveness and profitable growth across the Group. Our focused profitability improvement initiatives over the past year have strengthened Stora Enso’s financial standing. However, we anticipate a slower market recovery for the remainder of the year to adversely impact profits due to the effect from declining pulp prices, subdued board demand and a changed mix of packaging products, together with continued high wood costs. We confirm our annual guidance for adjusted EBIT to be significantly higher than for the full year 2023 and remain committed to delivering exceptional service to our customers and robust value growth for our shareholders.”
Webcast for analysts, investors, and media
Analysts, investors, and media are invited to participate in the webcast with a teleconference today at 11:30 am EEST (10:30 CEST, 9:30 BST, 4:30 EDT). The results will be presented by President and CEO Hans Sohlström and CFO Seppo Parvi. The presentation can be followed live via the link: stora-enso-oyj-q3-earnings-presentation-2024.open-exchange.net/registration
During the webcast presentation, analysts and investors will also have the possibility to ask questions. To participate in the teleconference, please choose the “Teleconference” option on the homepage of the webcast. Recording of the webcast will be available shortly after the event at the same address and at storaenso.com/en/investors/interim-report
Media representatives who wish to ask questions after the publication of the report may contact Carl Norell, SVP Corporate Communications at Stora Enso on +46 72 241 0349.
This release is a summary of Stora Enso’s Interim Report January–September 2024. The complete report is attached to this release as a pdf file. It is also available on the company website at storaenso.com/en/investors/interim-report.
Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials, and wooden construction, and one of the largest private forest owners in the world. Stora Enso has approximately 20,000 employees and our sales in 2023 were EUR 9.4 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the USA on OTC Markets (OTCQX) as ADRs and ordinary shares (SEOAY, SEOFF, SEOJF). storaenso.com/investors
STORA ENSO OYJ
CONTACT:
Media enquiries:
Carl Norell
SVP Corporate Communications
tel. +46 72 241 0349
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691
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Tech Stocks Up in Late Trading as Tesla Surges 9%: Markets Wrap
(Bloomberg) — Big tech climbed in late hours as Tesla Inc. kicked off the “Magnificent Seven” earnings season with solid results. Bond yields rose on bets the Federal Reserve will take a measured approach on rate cuts.
Most Read from Bloomberg
Following a stock-market selloff on Wednesday, Wall Street pointed to a rebound led by its most-influential group. A $300 billion exchange-traded fund tracking the tech-heavy Nasdaq 100 (QQQ) gained after the close of regular trading. Tesla jumped 9% as Elon Musk’s electric-vehicle giant also indicated it expects another strong quarter of deliveries, saying it anticipates higher volumes for the full year.
“Earnings season is heating up. We believe there is continued upside ahead for stocks, especially now that we are entering a seasonally strong period of the year for markets,” said David Laut at Abound Financial.
After last week’s rally to fresh all-time highs, equities have taken a breather, with investors fretting over a number of near-term risks. The next three weeks capture big tech earnings, October’s payrolls report, and the US election, followed by the Fed meeting.
“Despite the possibility of more volatility as we get deeper into earnings season and close in on the November election, the market’s longer-term outlook remains solid,” said Daniel Skelly at Morgan Stanley’s Wealth Management. “And even though this week’s move is a reminder that even the strongest trends have setbacks, so far, this has been a run-of-the-mill pullback for the major indexes.”
The S&P 500 fell 0.9%. The Nasdaq 100 dropped 1.6%. The Dow Jones Industrial Average slipped 1%. International Business Machines Corp. declined as its revenue underwhelmed. T-Mobile US Inc. raised its forecast for subscribers after a strong quarter.
Treasury 10-year yields rose three basis points to 4.23%. The dollar rose. The yen hit the lowest in almost three months, reviving concern that Japan may intervene. The loonie slid after the Bank of Canada stepped up the pace of easing.
To Jonathan Krinsky at BTIG, equities are finally noticing the moves in bonds and the dollar. That’s a stark contrast to the action in the last couple of weeks, with the bullish narrative being that bonds were re-pricing to where they should be based on the stronger-than-anticipated economy, he noted.
Essity: Interim Report, Quarter 3, 2024
STOCKHOLM, Oct. 24, 2024 /PRNewswire/ —
Quarter 3, 2024 – Profitable growth and higher market shares
- Net sales decreased 2.2% to SEK 36,274m (37,092)
- Organic growth amounted to 1.9%, of which volume accounted for 2.0% and price/mix -0.1%. Excluding restructuring, organic growth increased 3.4%.
- EBITA increased 47% to SEK 5,130m (3,497)
- EBITA excl. IAC decreased 1% to SEK 5,097m (5,147). Excluding currency translation effects, EBITA excl. IAC increased 6%.
- EBITA margin excl. IAC increased 0.2 percentage points to 14.1% (13.9).
- ROCE increased to 17.8% (11.7) and ROCE excl. IAC increased 0.5 percentage points to 17.7% (17.2).
- Operating cash flow increased 7% to SEK 6,453m (6,054)
- Profit for the period, total operations, amounted to SEK 3,329m (1,651)
- Earnings per share, continuing operations, increased to SEK 4.73 (2.20). Earnings per share, total operations, increased to SEK 4.73 (2.26).
CEO’S COMMENTS
The third quarter was characterized by strong earnings with profitable growth and record-high cash flow. Our focus on growth resulted in higher volumes and increased market shares all over the world.
Volume growth and higher market shares
Every day Essity cares for the hygiene and health of a billion people across 150 countries. Our solutions are needed regardless of the economic situation and we are working to constantly increase the value of customer and consumer offerings. Although the global economy remains challenging, we have higher volumes in all categories, excluding restructuring.
Growth was strong in Health & Medical, especially in Europe and Latin America. Our TENA Pants in Incontinence Products Health Care continued to drive both volume and higher margins and it is gratifying to see that the products are appreciated by both caregivers and patients. Growth was also particularly high in wound care products under our Leukoplast and Cutimed brands. We continued to gain market share in Consumer Goods, a result of our long-term work on innovation combined with investments in marketing. Growth was strong in Europe, but the development was also favorable in Latin America. In Professional Hygiene, growth was affected by restructuring, but underlying growth was strong, especially in the premium range.
Strong earnings
All business areas contributed to the Group’s good profitability. Earnings were positively impacted by the economies of scale we achieved through higher volumes and by a favorable product mix. We have also had good price discipline, despite lower costs of goods sold, and sales prices were higher compared with the second quarter of 2024. We continued to realize high cost savings through continuous efficiency improvements and have so far this year achieved more than SEK 1bn in savings. Combined, this led to a strong result for the quarter.
Record-high cash flow
The operations generated strong cash flow during the quarter and net debt was further reduced. Our share buyback program is ongoing and by the end of the quarter, we had repurchased about 4 million of Essity’s Class B shares.
“All business areas contributed to the Group’s good profitability. Earnings were positively impacted by the economies of scale we achieved through higher volumes.”
Looking ahead
With customers and consumers at the heart of our business, we will continue to win in the growing hygiene and health market through successful innovation, leading brands, sustainability and efficiency.
At the Capital Markets Day on December 3 in our production facility in Spain, we will provide deeper insights into the operations and how we are working toward our vision – to be the undisputed global leader in hygiene and health. I hope to see you there. Welcome!
Magnus Groth, President and CEO
INVITATION TO PRESENTATION
President and CEO Magnus Groth and Executive Vice President and CFO Fredrik Rystedt will present the interim report at a live webcast and teleconference at 09:00 CET on October 24, 2024.
Link to the live presentation, which can also be viewed afterwards:
https://essity.videosync.fi/2024-10-24-q3
Contact information for conference call with the possibility to ask questions:
UK: +44 (0) 33 0551 02 00
USA: +1 786 697 35 01
SWE: +46 (0) 8 505 204 24
Please call in well in advance of the start of the presentation. Indicate: “Essity”.
For additional information, please contact:
Fredrik Rystedt, Executive Vice President and CFO, tel: +46 (0) 8 788 51 31
Sandra Åberg, Vice President Investor Relations, tel: +46 (0) 70 564 96 89
Per Lorentz, Vice President Corporate Communications, tel: +46 (0) 73 313 30 55
NB: This information is such information that Essity Aktiebolag (publ) is obligated to make public pursuant to the EU Market Abuse Regulation. This report has been prepared in both Swedish and English versions. In case of variations in the content between the two versions, the Swedish version shall govern. The information was submitted for publication, through the agency of Karl Stoltz, Media Relations Director, at 07:00 CET on October 24, 2024.
This interim report has not been reviewed by the company’s auditors.
This information was brought to you by Cision http://news.cision.com
https://news.cision.com/essity/r/interim-report–quarter-3–2024,c4055618
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SOURCE Essity
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